Nikko Asset Management New Zealand's Auckland-based fixed income team is responsible for four strategies – New Zealand Cash, New Zealand Bond, New Zealand Corporate Bond and Bond Option.

Key Characteristics
  • Team operates a collegiate system
  • Four complementary strategies
  • Low risk approach
  • Disciplined and transparent process

The fixed income philosophy is that consistent and superior fixed interest returns are best achieved by adopting a diverse range of return generators, implemented in a risk controlled and cost effective manner. Over time, each return generator is expected to add small elements of incremental value, which accumulates to provide consistent and superior results.

Different market environments favour different return generators. By having a diverse range of generators, the portfolio will have a high probability of performing well under all market environments and conditions.

The process is a top-down analysis of medium term economic fundamentals and uses multiple sources of value that are designed to have limited correlation.